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Warburg Pincus is close to acquiring a stake in the Delhi-based Lemon Tree Hotels, a budget-hotel chain. Warburg is expected to invest $40 million in the hotel chain floated by Ravi Jaipuria, a Delhi-based businessman, and Patu Keswani, a former COO with Taj Group's business hotels. Jaipuria also owns Indian franchisee rights for Pizza Hut, and UK's Costa Coffee. He is also the bottler for Pepsi in India and Nepal and also runs the ice cream chain Cream Bell. Lemon Tree has currently two properties in Gurgaon, and a few are coming up in cities like Pune, Chennai, Delhi and Goa. They are looking at expanding to other cities with an investment of Rs 900-crore. It plans to add 25 hotels in seven years. It will also enter the low budget market under the Red Fox brand.

It's a good move for Warburg Pincus since the hotel industry is booming and India holds tremendous potential for quality budget hotels.

Warburg Invests $66 million in Aryan Coal Benefications

Warburg Pincus has also invested $66 million in Aryan Coal Benefications. According to Warburg website, Aryan Coal is the largest provider of coal beneficiation (washing, processing, and removal of impurities from coal) services in India. Its clients include power generation companies and cement manufacturers, for whom beneficiation of raw coal results in lower transport costs, as well as increased utilization and less wear-and-tear of capital equipment. It has operations in Chhattisgarh, Maharashtra and Orissa. It's a young company, incorporated only in 1997.

Go to article in The Economic Times.